Plain language law

New Zealand law explained for everyone

Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Customer due diligence - Enhanced customer due diligence

26: Politically exposed person

You could also call this:

"What is a Politically Exposed Person in New Zealand Law?"

Illustration for Anti-Money Laundering and Countering Financing of Terrorism Act 2009

When you start a business relationship or do an occasional transaction with someone, the company you are working with must try to find out if you are a politically exposed person. They must do this as soon as they can after you start working together. If they find out you are a politically exposed person, they must get approval from their senior management to keep working with you. If the company finds out you are a politically exposed person, they must also try to find out where your money comes from and make sure that information is correct. This is so they can understand where your wealth or funds come from. They must do this for both business relationships and occasional transactions. The company must take reasonable steps to get this information and verify it as soon as they can after they find out you are a politically exposed person. This helps them understand your situation better. They need to make sure they are doing business with you in a way that follows the rules.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2353125.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

25: Enhanced customer due diligence: other requirements, or

"Extra checks when dealing with some customers"

Next

27: Wire transfers: identity requirements, or

"Banks need to know who you are when you send money by wire transfer"

Part 2AML/CFT requirements and compliance
Customer due diligence: Enhanced customer due diligence

26Politically exposed person

  1. The reporting entity must, as soon as practicable after establishing a business relationship or conducting an occasional transaction or activity, take reasonable steps to determine whether the customer or any beneficial owner is a politically exposed person.

  2. If a reporting entity determines that a customer or beneficial owner with whom it has established a business relationship is a politically exposed person, then—

  3. the reporting entity must have senior management approval for continuing the business relationship; and
    1. the reporting entity must obtain information about the source of wealth or funds of the customer or beneficial owner and take reasonable steps to verify the source of that wealth or those funds.

      1. If a reporting entity determines that a customer or beneficial owner with whom it has conducted an occasional transaction or activity is a politically exposed person, then the reporting entity must, as soon as practicable after conducting that transaction or other activity, take reasonable steps to obtain information about the source of wealth or funds of the customer or beneficial owner and verify the source of that wealth or those funds.

      Notes
      • Section 26(1): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
      • Section 26(3): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).